Johannesburg - Litha Healthcare Group [JSE:LHG]
said on Tuesday that it had signed an agreement to acquire Goldex Healthcare, a Durban-based pharmaceutical company, in a deal that would result in the company rapidly expanding its pharmaceutical pipeline.
Formerly Myriad Medical Holding, Litha said that the cash deal would see it obtain a 100% share in the company, for a total value of R33m, funded through internally generated cash.
Goldex manufactures and distributes its own pharmaceutical products, and is an exclusive distributor for Unichem Laboratories, an Indian multinational.
By acquiring and integrating the Goldex product range, the Litha Healthcare Group said it would build scale and secure product pipelines for its Litha Pharma Division.
The company's products comprise prescription and over-the-counter medicines.
Goldex Healthcare promotes products including Sinustat and its product line holds 32 active pharmaceutical products that include mainly generics. It said it also had a number of products awaiting registration at the Medicines Control Council.
"Realising the need for continuity, Litha and Goldex Healthcare have agreed to an eight-month handover period until December this year. Thereafter, Litha Group will transfer the Goldex business to our headquarters in Johannesburg. We anticipate that the longer handover period will ensure a smooth transition of the Goldex business into the Litha Group," said Selwyn Kahanovitz, group CEO for the Litha Healthcare Group.
According to Litha, Goldex had experienced considerable growth and success in the generic pharmaceutical sector in southern Africa over the past three years. Part of this growth was due to its strong relationship with Unichem India.